Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 December 31 $54,000 2023 90,000 27,300 (11,300) $160,000 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7,800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,0001) 11 2022 % $6,200 88,800 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 11 %
Assets Cash Accounts receivable Equipment Less: Accumulated depreciation Total Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings Total Current ratio Debt to total assets ratio Free cash flow, December 31, 2023 $ 2023 December 31 $54,000 2023 90,000 27,300 (11,300) $160,000 $20,000 100,000 40,000 $160,000 Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7,800. (a) Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg.-15,000 or in parenthesis eg. (15,0001) 11 2022 % $6,200 88,800 21,100 (10,000) $106,100 $10,000 76,100 20,000 $106,100 2022 11 %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Assets
Cash
Accounts receivable.
Equipment
Less: Accumulated depreciation
Total
Liabilities and Shareholders' Equity
Accounts payable
Common shares
Retained earnings
Total
Current ratio
Debt to total assets ratio
Free cash flow, December 31, 2023 $
December 31
2023
$54,000
90,000
27,300
(11,300)
$160,000
2023
$20,000
100,000
40,000
$160,000
Net income of $32,800 was reported and dividends of $12,800 were declared and paid in 2023. New equipment was purchased, and
equipment with a carrying value of $4,800 (cost of $11.800 and accumulated depreciation of $7,000) was sold for $7.800.
(a)
Calculate the current ratio and debt to total assets ratio as at December 31, 2022 and 2023. Calculate the free cash flow for
December 31, 2023. (Round answers to 2 decimal places, eg. 52.75. Show amounts that decrease cash flow with either a-sign eg-15,000 or
in parenthesis eg. (15,000))
1
2022
$6,200
88,800
%
21,100
(10,000)
$106,100
$10,000
76,100
20,000
$106,100
2022
:1
%
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